Have you ever been confused about the words mentioned above? These codes appear from now and then when it comes to sending and receiving money from foreign countries. Don’t worry! You will be totally clear about these codes after reading this article.
SWIFT CODE (BIC)
SWIFT has its full name called: Society for Worldwide Interbank Financial Telecommunication. Since creation, SWIFT has incorporated many banks and non-bank financial institution including brokers, investment bank, etc. Each member bank of the association has its own specific SWIFT CODE, the SWIFT Code, also known as the Business Identifier Code (BIC).
At the time of wire transfer, the remitting bank sends the payment message in accordance with the receiving bank's SWIFT CODE, and the money can be remitted to the receiving bank, which is actually equivalent to the bank's ID number.
IBAN
The International Bank Account Number (IBAN) is a bank account number developed by the European Committee on Banking Standards (ECBS). IBAN is mostly used in Europe.
Compared to SWIFT CODE, IBAN provides not only the information of financial institution, but also the information of the money receiving account.
So next time when you make payment to European countries and some regions, make sure the accuracy of IBAN number.
ABA Routing Number
The ABA Routing Number is a 9-digit bank account number, which is assigned by the American Bankers Association. An ABA Routing Number is required for money transfers between US banks.
It is mainly used to confirm the route of bank-related transactions. Generally speaking, it is used to verify which bank the money you remit will go to.
SORT CODE
Sort code is a 6-digit clearing code in the UK, which is usually included in the payer's IBAN account.
If you remit pounds to the UK, when filling in the collection information, in addition to the normal collection account number and other information, you also need to fill in the Sort Code of the UK account.
Now let XTransfer summarize today’s topic for you!
SWIFT CODE is more commonly used in international wire transfers.
IBAN accounts are available in Euro payment zones.
The ABA Routing Number applies to transfers between banks in the United States.
SORT CODE applies to sending British pounds to the UK.
